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The program is positioned in an extremely weird and non-helpful governmental location for the excitement of international investment in the United States. We are offering away as well much for as well small of a financial investment.


The local facilities, with their half-million plans, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to have to do with creating company entities, not easy investments. It should have to do with developing genuine work, not clarify calculations regarding the indirect creation of work, which is now part of the regulations.


Perhaps that is among the reasons why it has fallen short every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly enter into later on if anyone is interested.


This is a company that likes to say yes to applicants, but as the table in my statement shows, USCIS policemans have much extra difficulty with EB-5 applications than others. I think that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and forever reason

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Seventh, in this program visas go to individuals that could not obtain them differently and to people whose scheduled financial investment is in fact less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Let me expand on among my observations.


My price quote based on the capitalists' permit applications filed 2 years after the first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not supply the sort of data that we might utilize on this.


So for every $100 of increased foreign investment that year, the EB program contributed one dime. Under a a lot more shaky analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your comments and questions. [The ready statement of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine functioned as Principal Guidance of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has actually worked thoroughly with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Organization to Invest in USA, the national sector association of local.


Divine, we are pleased to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, yet it click here is growing and obtaining toward that. Particularly as USCIS, the company that oversees the program, has been making the regulations clearer and the processes extra logical and clear for the individuals who are arranging financial investments and for the capitalists that are spending, more individuals have agreed and able to place initiative and cash right into the procedure to find good projects and create them, and after that much more capitalists have agreed to spend their cash and take the threat and use the cash to produce the tasks that is the factor of the program.

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These projects do not wait about permanently, and USCIS recognizes that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The local center component of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a great while to work up a project and after that to get the financiers authorized. And they do not want their money streaming through up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the advancement of jobs.

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I would such as to clarify that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 legislation that is component of the code. It simply is a truth that most of the local centers that are pooling investments have set those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes sense.